Voluntary organisations have joined forces to set up Bedford Payday Loans Watch to raise the profile of advice and information available.
Bedford Citizen’s Advice Bureau, Bedford Credit Union (CAB), Age UK Bedfordshire and the Salvation Army Debt Advice Service are to work together to inform people about the potential dangers of engaging with high cost credit facilitators such as payday loans, as well as gathering evidence of people’s experiences dealing with high cost fiscal advances from such businesses.
Organisations are encouraged to gather evidence on the experiences of Bedford people who deal companies who provide advances with steep rates of interest.
Details will then be passed to the Financial Conduct Authority which is reviewing regulations aimed at controlling some of the practices prevalent in the industry.
The CAB have said they dealt with 2,904 debt enquiries in Bedford Borough Council within the last six months of 2013/14.
Lynne Powell, general manager of Bedford Credit Union said: “Payday loans can be a costly way to deal with financial problems. One in three people who take out a payday loan get into more money trouble. There are other ways to get help and support. The group will promote these and warn everyone about the pitfalls of payday lending.”